So, you are a crocheter and after much deliberation and convincing from friends and family, you have decided to sell your crochet items to the public.
The first question that you will probably ask yourself is “how should I price my crochet items”.
For us crochet enthusiasts, it is very difficult to realize all the work that goes into each of our products and to be able to confidently say. “I am worth it!”. For us, crochet started as a hobby. We charged our family and friends a small amount of money just to cover our material cost.
Now, to go from a hobby to a business, you will have to shift your mentality about how to price your items. Don’t be nervous to place a fair price on your items. You have put in a lot of hard work and love in your products, and you should feel proud to make it available to the world. Remember, you do not want bargain hunters as your customers! These people will always harass you to lower your prices and will not appreciate your hard work and the quality of your products. You want customers who appreciate your talent and will become repeat customers. And for this reason, you must make sure that you price your crochet items fairly.
Here are the steps to fairly price your crochet items.
1. Keep track of your supplies cost –A
2. Set your hourly wage – anything between $10-$15 is reasonable – say $12/hour – B
3. Set a small amount per item to cover your business expenses such as website cost, workspace electricity/heating/ cooling, marketing – say around $3 per item – C
4. Set up a mark up cost for your profit – say 30% which is = 1.3 for wholesale items – D
5. Consider adding a 54% markup to your wholesale price for your retail price – E
There are many strategies out there to set prices for your items such as the 3X supplies method, the conventional method, and the profit minded method.
Each of these methods will yield drastically different prices for the same crochet item and are thus difficult to stick to.
One of the methods that is discussed by crochetpreneur.com is the balanced method
Supplies + (your hourly wage X how many hours it took you to make your product) + business expenses X your mark up
A + (B X the number of hours it took to make your item)+C X D = wholesale item cost
Wholesale item cost X E = retail cost
If you decide to go with the numbers that Crochetprenuer.com sets then this is what your formula is going to look- all you have to do is change A (the cost of your supplies) and the number of hours, it took to make your item. Everything else will stay the same
A + (12 X hours) + 3 X 1.3 = wholesale price
Wholesale price X 1.54 = retail price
Now, I will be the first one to say that this is not going to be easy for you. It is always difficult to price your own products. If you are doing this as a hobby, go ahead and set your own prices the way you like to. But, if you are considering making crocheting your full time business, then consider the balanced pricing method set by crochetpreneur.com
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